A slight gain in the confidence levels among home builders in the U.S. last month, was undone by a 2 point decline in June. Rising construction costs have long been cited as the major reason builders have been weary. Confidence levels are measured according to The National Association of Home Builders’ index.
“While demand for single-family homes remains sound, builders continue to report rising development and construction costs,” said NAHB Chairman Greg Ugalde.
In addition to grappling with rising costs, a shortage of skilled labor has also depressed confidence levels among the nation’s home builders. Despite this month’s drop, the index’s component measuring future conditions remains positive with a reading of 70.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.
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